Superblocks spark keen interest

Rick Martin's Cornerstone Group has $39 million worth of Albany land under contract. Photo / Supplied

Rick Martin's Cornerstone Group has struck contracts to sell chunks of its highly-geared North Shore land bank.

That puts to an end plans begun years ago for a $3.5 billion city centre at Albany with 30-storey office towers.

Martin said he had $39 million worth of Albany land under contract and he hopes to sell land for a business park at Silverdale.

He turned the Albany freehold land he bought for $250 million into leasehold blocks.

He then sold an interest in it last decade in a complicated deal with Albany City Holdings, majority-controlled by Colin Reynolds' Symphony Projects but with about a third in the hands of Auguste Albany, a private investment vehicle for the failed St Laurence group's major shareholders, Kevin Podmore and Mike O'Sullivan.

The bold vision was for a mix of apartments, shops and offices on leasehold titles on bare land between State Highway One and the Albany Highway, with Martin seeking long-term benefits by receiving the ground rent.

In November 2006, property executives Garry Looker, Kevin Podmore and Nick Wevers unveiled their scheme for a 200-room hotel, large-scale apartment project with three towers rising up to 30 levels, 15 office blocks rising 10 levels, a retirement village for hundreds of people and a new bulk retail centre.

Project chief Adam Reynolds said the apartments could sell for $400,000 to $500,000.

A scale model was on display in the Viaduct showing how bare Albany land could be built to the max, the developers then seeking $20 million from the public.

Last year, Peter Brook, Albany City Property Investments chairman, told shocked investors it is "uncertain as to whether ACPI will be in a position to meet the next quarterly interest payment to bond-holders", due last June 30.

The grand Albany never eventuated and now Martin has produced documents calling for parties to do due diligence and buy chunks of the land.

Martin said sales of his Silverdale and Albany City plots had drawn "a huge amount of interest" and he is confident many hectares around Westfield Albany and on the edge of State Highway One at Silverdale would soon be in other people's hands.

He produced information on the Albany land which shows how in 2005 he bought 44.4ha freehold land and he has since broken that big holding into 11 "superblocks". Each of those blocks have separate zoning designations for a diverse mix of shops, offices, apartments and other commercial activities.

"There has been interest on most of the sites and contracts on lot one, the hotel site which is now under contract, lot 10, which is the retirement village site, now under contract and we have counter-signed two contracts for other lots at G Block. We also have 5ha of the C Block at Albany under contract. This represents $30 million in conditional contracts for the fortnight," Martin said.

Bruce Whillans of Ray White has had "excellent interest" in his tender on E Block, the Mitre 10/ING land. Tenders for that fall due this month, Martin said.

At Silverdale where Martin once planned the Silverstone Business park, parties were working on concepts for development.

"We have had our sale and purchase contracts drafted up," he said.

At Takapuna, Martin said only two apartments in the 30-level Sentinel apartment block were left to sell.

"All in all, things are going very well. We even managed to unconditionally sell another apartment: 2503 for $1.26 million. We are now down to the last two units, both sub-penthouses at half a floor each, 115 sold, two to go," he said.

Apartment 2801 is a 266sq m three-bedroom north-facing unit on level 28 for sale for $2.4 million. The adjoining apartment 2802 is a 247sq m three-bedroom unit facing the harbour and beach for sale at $2.2 million, Martin said.

The colourful developer summed up the rush for liquidity best last year when he told why he was selling big chunks of assets and undeveloped land. "Cash, baby, cash!"

Martin once planned to build a controversial 37-level Everest Tower in Orewa, converting the Hibiscus Coast into the Gold Coast.

He also wanted to create a new town centre at Waimauku.

CORNERSTONE
* Multimillion-dollar private developer
* Built 30-level Sentinel apartments
* Planned huge Albany City project
* Built Orewa's Nautilus units
* Had big plans for Waimauku
* Planned 37-level Everest, Orewa
* Built Oyster Cove apartments
* Now quitting large Shore holdings